SAT said, after taking into consideration all mitigating factors, SEBI has imposed a penalty of Rs7 lakh on IndiaNivesh Capital as against penalty imposable at Rs1 crore, which can't be said to be arbitrary or unreasonably excessive
The Securities Appellate Tribunal (SAT) dismissed plea of IndiaNivesh Capitals against an order issued by market regulator Securities and Exchange Board of India (SEBI) slapping a fine of Rs7 lakh on the company for failing to make shareholding disclosures within the stipulated time.
The SEBI in March had imposed a penalty on the company for the delay of more than 16 months in making disclosures.
IndiaNivesh Capitals (erstwhile Jupiter Enterprises Ltd) approached SAT saying that the decision of the market regulator was 'arbitrary and unreasonably excessive'.
In an order, SAT said that "in the present case, penalty imposable upon the appellant for failure to make disclosures (under SEBI's norm)...would come to more than Rs1 crore for the delay of 16 months and 6 days."
However, SEBI after taking into consideration all mitigating factors has imposed penalty of Rs7 lakh as against penalty imposable at Rs1 crore, which can't be said to be arbitrary or unreasonably excessive, SAT noted.
It said the company having failed to comply with the disclosure requirements can't escape the penalty for the violations committed by it.
SAT said it sees no reason to interfere with the order passed by SEBI and dismissed the company's appeal.
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